What are the 3 top artificial intelligence (AI) stocks to buy right now?

The AI revolution is here, reshaping industries and creating immense investment opportunities. But how do you navigate the hype to identify its essential foundation builders?

While AI applications grab headlines, long-term value lies in foundational infrastructure – the indispensable hardware powering every breakthrough. These are the unsung architects. For strategic investors, focusing on these providers offers a robust path. Let’s explore three companies poised for sustained growth at the heart of the AI boom.

NVIDIA: The AI Infrastructure King

Nvidia’s evolution from gaming GPUs to the indispensable engine for AI data centers showcases strategic genius. Its chips are the backbone of major AI initiatives, but its true moat is the CUDA software platform.

By making CUDA freely available, Nvidia fostered an ecosystem where developers extensively programmed GPUs, creating powerful lock-in. Combined with NVLink interconnects and the Mellanox acquisition for scaling AI clusters, this integrated strategy delivered a commanding 92% of the GPU market in Q1. Nvidia is a foundational AI investment.

BROADCOM: Custom AI and Cloud Powerhouse

Broadcom excels in AI through essential networking components and custom chip development. Its Ethernet switches and optical receivers are vital for huge AI cluster data traffic, driving a 70% surge in AI networking revenue last quarter.

The larger opportunity lies in custom AI chips. Hyperscalers increasingly seek application-specific integrated circuits (ASICs) for specialized AI tasks like inference, prioritizing performance and cost efficiency. Broadcom, with deep ASIC expertise, is a key partner, developing Alphabet’s tensor processing units (TPUs).

This success fuels partnerships; three major customers project one million chip clusters by fiscal 2027 – a potential $60-90 billion market. Broadcom’s custom silicon is central to these large-scale deployments.

Additionally, Broadcom’s VMware unit is pivotal in AI cloud infrastructure. VMware’s Cloud Foundation aids enterprises in managing AI workloads across hybrid and multi-cloud environments. Combining networking, bespoke chip design, and critical cloud management, Broadcom boasts diverse growth engines.

TAIWAN SEMICONDUCTOR MANUFACTURING: The Indispensable Foundry

TSMC is a foundational, often overlooked, pillar of the AI ecosystem. As the world’s most advanced foundry, it manufactures cutting-edge chips for leaders like Nvidia and Broadcom. TSMC thrives regardless of which chip designer wins; it is indispensable for all advanced AI silicon.

TSMC’s strength stems from its unparalleled scale and technological supremacy in advanced node chip production. Denser nodes yield more powerful, efficient chips. While competitors struggle, TSMC consistently achieves high yields on its smallest nodes. 7-nanometer and smaller technologies comprise almost three-quarters of its revenue; 3nm is expanding, and 2nm is on the horizon.

This technological edge provides TSMC robust growth visibility. It expands capacity with major customers to meet surging AI chip demand, projecting over 40% annual growth through 2028. Its near-monopoly in advanced manufacturing also grants significant pricing power. TSMC is uniquely positioned for sustained AI infrastructure buildout.

Investing in the AI revolution means looking beyond dazzling applications to fundamental building blocks. Nvidia, Broadcom, and TSMC represent core infrastructure providers, each with distinct competitive advantages positioning them for long-term growth. Their roles in specialized processors, advanced networking, and indispensable manufacturing make them compelling choices for investors. Evaluate these cornerstones to build a richer future.